U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19644 / April 7, 2006

SEC v. Mark T. Ellis, Case No. 06-C-1783 (N.D. Ill.)

Court Orders Compliance with SEC Testimony Subpoena

On March 31, the Securities and Exchange Commission (Commission) filed an application in the United States District Court for the Northern District of Illinois seeking an order requiring Mark T. Ellis (Ellis) to comply with a subpoena for testimony. On April 6, Judge Samuel Der-Yeghiayan granted the Commission's application pursuant to a motion filed by the Commission. Ellis, a resident of Irvine, California, is the President, Chief Executive Officer, Chief Financial Officer and Chairman of Winsted Holdings, Inc. (Winsted Holdings). According to the application, the Commission is investigating whether Winsted Holdings, Ellis and others issued Form S-8 shares to employees and consultants in violation of the registration and anti-fraud provisions of the federal securities laws. The application stated that Ellis failed to appear for testimony as required under a Commission subpoena. The Commission's staff issued the subpoena as part of the investigation captioned In the Matter of Finance 500, Inc. (C-03895). The Court order requires Ellis to appear for testimony on April 25 in San Diego, California. The order also provides that, upon agreement of the parties, the testimony may occur prior to April 25 at a location other than San Diego.